Tax group drops case against Oak Park school district

The school district spent $59,582.74 in legal fees defending itself from the lawsuit

December 20, 2012|By Ken Manson, Special to the Tribune

Taxpayers United of America has withdrawn its fight to keep alive a lawsuit that alleged Oak Park School District 97 understated, by 300 percent, the amount of the tax increase from an April 2011 referendum.

The Chicago-based tax advocacy group sued District 97, alleging officials told residents the real estate tax increase would be $37.40 for each $100,000 of home value, but the estimate was wrong because the district did not include the Cook County equalizer of 3.3701 that would have tripled the tax increase to $126.04. The suit was dismissed and the group appealed the judge's decision.

Taxpayers United Executive Director RaeAnn McNeilly said the group dropped the appeal because a state bill passed in August will require use of the multiplier in language of tax rate referendums. That legislation was introduced by State Sen, Don Harmon (D-Oak Park).

She said she is glad the legislature thought to bring about the reform.

"We are pleased that this matter has finally been resolved, and appreciate the support we received from the community on this issue," School Board President Peter Barber said in a written statement. "While it was unfortunate that we had to waste valuable time, energy and resources fighting this lawsuit, we remain steadfast in our belief that defending the decision the residents of Oak Park made on April 5, 2011 regarding the District 97 referendum was the right thing to do."

School officials previously said they followed the advice of the bond counsel in writing the ballot question, which complied with the law as it was written.

The school district spent $59,582.74 in legal fees to the Arlington Heights law firm defending it from the lawsuit.

The tax group filed a lawsuit in May 2011 against the school district and the Committee to Support Oak Park Schools. That July, Judge Mary Mivka of the Cook County Circuit Chancery Division, granted the request to dismiss the complaint. The judge ruled that if the school district used an incorrect formula, it was an "error in computing" within the meaning of the statute and not a deliberate incorrect calculation as the plaintiffs allege.

The group brought the lawsuit to the Appellate Court, where the court dismissed the appeal this March. The Illinois Supreme Court ordered the Appellate Court to vacate that order, sent it back and combined the lawsuits by Taxpayers United against District 97 and Wilmette School District 39 in a similar matter.